The Standard Costs and Actual Costs for Direct Labor in the Manufacture

question 38

Multiple Choice

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: The direct labor time variance is

• A) $1,180 favorable
• B) $1,140 unfavorable
• C) $1,180 unfavorable
• D) $1,140 favorable

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Definitions:

Accounting Policies

The distinct guidelines, foundations, methods, regulations, and procedures employed by an organization in the creation and disclosure of financial reports.

Financial Statements

Structured records that convey the financial activities and conditions of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Management's Objectives

The specific goals set by a company's management intended to guide decision-making and strategic planning for business success.

IFRS for SMEs

A simplified, self-contained set of accounting principles intended for smaller, less complex entities, based on the full International Financial Reporting Standards (IFRS).